QUESTION 5 Closing entries are O an optional step in the accounting cycle. posted to the ledger accounts from the work sheet. made to cose permanent or real accounts. O Journalized in the general journal. QUESTION 6 Closing entries are made in order to terminate the business as an operating entity so that all assets, liabilities, and stockholders' equity accounts will have zero balances when the next accounting period starts. in order to transfer net income (or loss) and dividends to the Retained Earnings account O so that financial statements can be prepared. QUESTION 7 In preparing closing entries each revenue account will be credited. each expense account will be credited. the Retained Earnings account will be debited if there is net income for the period. the Dividends account will be debited